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- Over time, a real depreciation in the value of a nation's currency should result in Select one: a. exports rising and imports falling. O b. exports falling and imports rising. O. both imports and exports rising. O d. both imports and exports falling.Which of these situations will cause the depreciation in the value of the UAE Dirham? O a. Increase in the exports of oil and less imports of other things O b. Lower exports of oil and a decrease in the gross domestic product O c. Lower exports of oil and an increase in gross domestic product O d. Increase in the price of oil and increase in exports of minerals and gassesThe supply curve for Japanese yen on the foreign-exchange market is upward-sloping when plotted against the exchange rate (measured as the Canadian dollar price of one Japanese yen) because Select one O a when the dollar appreciates, Canadian goods are cheaper in Japan, and more Canadian exports are therefore demanded, O b. when the dollar depreciates, the price of Japanese exports to Canada decreases. Oc when the dollar depreciates, Canadian goods are cheaper in Japan, and more Canadian exports are therefore demanded O d. an appreciation of the dollar will cause the yen prices of Canadian exports to fall Oe. a depreciation of the dollar will cause the yen prices of Canadian goods to rise.
- What happened here? All data in real $bn. NX + Y NX new NX old O a. our currency appreciated, raising our exports lowering our imports. O b. our currency depreciated, lowering our exports and increasing our imports. O c. None of the answers offered are accurate. O d. our currency depreciated, raising our exports and lowering our imports. O e. foreign income increased, raising our exports only Which of the following would be the effects of a rise in consumer optimism? You are strongly advised to graph this question before answering it. Shift upwards of the whole C function II Shift upwards of the whole S function II Shift downwards of the whole 5 function Iv A movement upwards and along stable Cand S functions. i only i and i Oc iv only O b. d. i and i O e. None of the answers offered are accurate. (All data is in real $ bn). What could have caused the change depicted below? BB=T-G Real $ bn BB new ВB old Y O a. Government decreased its spending on goods and services. O b. Government…A fixed exchange rate is an example of Select one: O a. a quantity restriction in a market. O b. a price control. c. a tax on foreign exchange transactions. O d. fiscal policy.If the Bank of Canada raises its target for the overnight interest rate from 3 percent to 3.25 percent while interest rates in other countries do not change, the result is of financial capital, in demand for Canadian dollars and of the Canadian dollar. O a. An outflow; a decrease; aldepreciation. O b. An inflow; a decrease; a depreciation. O c. An outflow; an increase; an appreciation. O d. An inflow; an increase; a depreciation. O e. An inflow; an increase; an appreciation.
- If the exchange rate is constant and U.S. imports increase, then in the foreign exchange market the a. supply of U.S. dollars decreases. O b. demand for U.S. dollars increases. O C. supply of U.S. dollars increases. O d. quantity of U.S. dollars supplied decreases. e. quantity of U.S. dollars supplied increases.Can a currency experience a nominal depreciation and a real appreciation at the same time? O A. Yes, if domestic inflation is sufficiently lower than foreign inflation O B. No, unless the nominal exchange rate decreases O C. Yes, if domestic inflation is sufficiently higher than foreign inflation O D. NoAccording to the open-economy macroeconomic model, import quotas increase which of the following O a. net exports and net capital outflow O b. net exports but not net capital outflow. O c. net capital outflow but not net exports. O d. neither net exports nor net capital outflow.
- The law of supply of foreign exchange tells us that, other things remaining the same, Select one: O A. the higher the exchange rate, the greater is the supply of Canadian dollars O B the lower the exchange rate, the smaller is the supply of Canadian dollars. O C. the higher the exchange rate, the greater is the quantity of Canadian dollars supplied. OD the lower the exchange rate, the greater is the quantity of Canadian dollars supplied. O E. the lower the exchange rate, the greater is the supply of Canadian dollars.Determine which account of the Balance-of-Payments is affected the following transaction: A local resident purchases a retirement condo in Florida for US$10 million. Select one: O a. Current Account - Transfers O b. Current Account - Imports O c. Capital Account - Portfolio Investment O d. Capital Account - Foreign Direct Investment Oe. Current Account - Exports1 2. 3. Consider Vietnam and the Philippines as trade partners and the Vietnamese Dong and Philippine Peso as the currencies in the foreign exchange market for items 41 and 42. Which of the following will result to the depreciation of the Philippine Peso? O a. Increase in the supply of the Philippine Peso O b. Decline in the demand for both currencies O c. Increase in supply of the Vietnamese Dong O d. Increase in demand for the Philippine Peso Which of the following will result to an appreciation of the Vietnamese Dong? O a. Recession in the Philippines O b. Higher interest rates in the Philippines than in Vietnam O c. Lower price levels in Vietnam than in the Philippines O d. Civil unrest is on the rise in Vietnam The level of exchange rate can only be determined by market forces or the supply and demand of currencies. O a. True O b. False